KUALA LUMPUR (Aug 17): Allianz Malaysia Bhd’s net profit declined 13% to RM66.48 million for the second quarter ended June 30, 2017, from RM76.29 million a year earlier, mainly due to higher  expenses. Earnings per share fell to 38.23 sen, from 44.93 sen.
 
Revenue rose 4% to RM1.19 billion in 2QFY17, from RM1.15 billion a year earlier, the group said in a filing with Bursa Malaysia.
 
Cumulative net profit for the first half of the year (1HFY17) fell 11% to RM133.65 million, from RM149.47 million in the previous corresponding period. Revenue increased 4% to RM2.40 billion, from RM2.32 billion in 1HFY16.
 
“Business and consumer sentiments have improved for the second quarter of 2017, given how Malaysia’s economy is currently on a growth trajectory driven by domestic demand and strengthening exports,” Allianz Malaysia chief executive officer Zakri Khir said in a statement.
 
The group, he said, achieved RM2.20 billion in gross written premiums (GWP) in the first six months of 2017, “owing to our varied product options, flexibility, and strong strategic partners in the digital space that has enabled us to continuously deliver the best value for our customers.”
 
This represents a 3.9% increase over the RM2.11 billion GWP reported for the same period of 2016.
 
The group’s total assets, meanwhile, grew 10.5% to RM15.86 billion in the first half of 2017, from RM14.36 billion previously.
 
The group said it experienced lower gross earned premiums in the second quarter of 2017, for both its general and life insurance segments.
 
Moving forward, the group said it expects competition to intensify for its general insurance business and as such, will take key initiatives to remain competitive such as building a technical pricing model, active portfolio and claims management, as well as disciplined expense management.
 
Allianz Malaysia shares closed unchanged at RM14.52 today, giving it a market capitalisation of RM2.53 billion.